• Lynch Group to close two of its three Australian potted farms
• Closure of Queensland farm accelerated due to weather damage
• No material impact on underlying Group earnings expected
• FY25 guidance reaffirmed, including 6% revenue growth and stable EBITDA margin

Lynch Group Holdings Limited (ASX: LGL) has today reaffirmed its previous guidance for FY25 and announced the outcome of a strategic review of its Australian potted farms operations. As part of the Group's FY25 strategic planning process, and recognizing the farms create complexity but do not make a material earnings contribution, the Group has decided to close two of the three farms. The Queensland farm, which specializes in growing phalaenopsis orchids, will now be closed around 30 June 2026, brought forward from the original plan to exit by the end of the current lease in 2030. This decision was made due to recent extreme weather, linked to ex-Tropical Cyclone Alfred, causing significant damage to the farm's growing inventory. The two Western Australian farms, comprising a potted plant facility and a native wildflower facility, will also be closed upon lease expiry in the coming months and 2030, respectively. The total impact of the closures, to be recognized in FY25, is expected to include a non-cash cost of $8.5 million to $9.5 million for asset write-downs and a one-off cash cost of $3.5 million to $4.0 million for lease obligations and staff redundancies. However, no material impact on the Group's underlying earnings is expected. The Group reaffirms its February FY25 guidance, excluding the farm closure costs, of around 6% revenue growth driven by strong performance during key event periods and a similar EBITDA margin to the prior year.

FY25 full year group Revenue growth of around 6% and FY25 full year group EBITDA margin at a similar level to the prior year